Kongsberg Maritime has entered into an agreement to acquire Steerprop, a Finnish manufacturer of azimuth propulsion systems, as it seeks to strengthen its position in the market for Arctic and high ice-class vessels.
Steerprop designs and manufactures propulsion systems for vessels operating in demanding conditions, including icebreakers, polar research vessels and offshore support vessels. Its systems are installed on more than 400 vessels worldwide.
Context: Kongsberg Maritime
The Finnish company also has a significant order backlog, according to the announcement, with most of that work connected to Arctic and ice-class projects.
Operational context
Kongsberg Maritime said the proposed acquisition will combine Steerprop’s specialist propulsion technology and Arctic expertise with its own international organization, lifecycle service network, systems integration capabilities and operational scale.
Lisa Edvardsen Haugan, chief executive of Kongsberg Maritime, described the agreement as a strategic step that would reinforce the company’s position in the expanding Arctic and ice-class vessel segment. She said the combination would bring Steerprop’s propulsion expertise together with Kongsberg Maritime’s global reach and broader integration and support capabilities.
Kongsberg Maritime expects demand in this segment to be supported by fleet renewal programs, investment in polar research and increased activity in Arctic regions.
The combined business is also expected to offer customers a wider range of equipment and lifecycle support covering propulsion, energy, automation and other onboard systems.
Until the transaction is completed, Kongsberg Maritime and Steerprop will continue to operate independently. Existing projects, deliveries and contractual commitments are expected to proceed without changes during this period.
Following completion, Kongsberg Maritime plans to integrate Steerprop through a phased process. The stated priorities will include retaining the Finnish company’s Arctic propulsion expertise and customer relationships while gradually introducing common systems, processes and operating models.
The acquisition is subject to customary regulatory approvals and other closing conditions. Financial terms and an expected completion date were not disclosed in the supplied announcement.